Administration Plan Seeks Control of Changes at I.R.S.

By ROBERT D. HERSHEY Jr.

Published: May 21, 1997

WASHINGTON, May 20—
In an apparent effort to head off a more drastic measure, the Clinton Administration today proposed creating a special management board to oversee efforts to overhaul an Internal Revenue Service whose multibillion-dollar modernization plan has stumbled into disaster.

Although the board would report to Congress twice a year, it would be composed of top Treasury officials and other Government employees who would provide what the Administration contends is necessary accountability and protection of taxpayer privacy.

By contrast, a commission on the I.R.S. headed by members of Congress is expected to recommend establishing an independent board.

The Administration's proposed management board, to be established by a Presidential order, would make strategic, personnel and procurement decisions. Moreover, the Administration said it would establish a task force of I.R.S. employees to review taxpayers' frustrations and suggest remedies within 90 days.

Another element in today's package was a proposal to limit to five years the term of the I.R.S. commissioner, the only political appointee among the agency's more than 100,000 employees. There is no fixed term now, but commissioners rarely survive a change in administrations.

Officials said a fixed term would enhance the continuity of leadership, though commissioners could still be dismissed by the President. This proposal would require legislation.

Senior officials said today that they were close to making a recommendation to the White House and denied suggestions that their efforts had been hampered because the post pays $123,100.

The management board is to consist of the Treasury Secretary, his deputy, other Treasury personnel and representatives of the I.R.S., the Office of Management and Budget, the Office of Personnel Management, the National Performance Review and other departments.